New Delhi: First quarter fiscal deficit widened 43 per cent from a year ago on increased spending by the Government, the finance ministry said ons Monday.
The federal Government's deficit - expenditure in exces of revenues - widened to Rs 777 billion (US$17 billion; euro13.42 billion) during the April-June period from Rs 545 billion in the same period a year earlier, according to the latest update released by the finance ministry.
The deficit in the first quarter amounted to 52 per cent of the full-year target set in the budget. India's fiscal year runs from April through March.
The deficit widened despite a 37 per cent increase in Government revenues, because spending grew even faster, it said.
A higher deficit adds to the pressure on interest rates, which are already moving up due to rising inflation and increased demand for credit.
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